The law of comparative advantage suggests that
a. curtailing U.S. trade with other countries would make U.S. consumers better off.
b. everyone would be better off if they were self-sufficient.
c. countries will tend to import commodities that they can produce at a relatively low opportunity cost.
d. countries will tend to import commodities that they can produce at a relatively high opportunity cost.
D
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Dumping is considered a practice that seriously harms domestic producers because
A) the quality of the dumped good is superior to that of the importing country. B) it allows the exporting country to use poor quality materials. C) it establishes a price that cannot be met by domestic producers. D) it discriminates between wealthy and poor countries.
Which of the following is the most critical signaling mechanism in markets?
a. quantity b. price c. cost d. government regulation
"My brother is better at cooking, better at cleaning, and better at fixing the car than I am." Relative to me, my brother has
A) an absolute advantage in cooking, cleaning, and car repair. B) a comparative advantage in cooking, cleaning, and car repair. C) more intelligence than me. D) more income than me.
Kick is looking to play for a U.S. MLS team. D.C. United is offering him $50 million for his first year. The Chicago Fire is offering him $25 million his first year and $10 million per year for the following three years. The market interest rate is 5 percent. Which offer is the better deal in terms of present value in millions?
A. D.C. United, because it will pay him $50 million compared with $48.1 million from Chicago Fire B. D.C. United, because it will pay him $50 million compared with $46.8 million from Chicago Fire C. Chicago Fire, because it will pay him $52.2 million compared with $50 million from D.C. United D. Chicago Fire, because it will pay him $55 million compared with $50 million from D.C. United